R E P O RT O N H O W A I , M AC H I N E

L E A R N I N G A N D B L O C KC H A I N H E L P I N
H R O P E R AT I O N S

How AI helps in Litigation and Compliance

TYPES OF AI FOR OPERATIONALIZING COMPLIANCE

A. Process Automation
The first is the most basic, process automation, also called “robotic process automation” (RPA).
This type of automation focuses on typical back-office administration functions, such as
administrative and financial, which seem tailor made for an operationalized compliance program.
RPA works well with inputting of information, collating and then synthesizing information from
multiple IT sources, such as:

 transferring data from e-mail and call center systems into systems of record—for
example, updating customer files with address changes or service additions;

 replacing lost credit or ATM cards, reaching into multiple systems to update records and
handle customer communications;

 reconciling failures to charge for services across billing systems by extracting

information from multiple document types; and

 “reading” legal and contractual documents to extract provisions using natural language
processing.

RPA is the least expensive and most straight forward to implement. It can produce the quickest
results and the all-important return on investment (ROI). The authors cited an example from
NASA where the space agency implemented RPA pilot programs in accounts payable and
receivables, IT spending and Human Resources (HR). They were all managed by one central
project management team and greatly improved efficiencies. Most interestingly, this process did
not put employees out of work but only reduced costs on tasks which could already be offshored.

b. Using Analytics and big data

 Employment-related lawsuits tend to be fact-driven, which makes gathering documents and other
information critical. However, only 5 percent of respondents to Littler's survey are using
advanced analytics to guide their litigation strategy.

Data analytics can also be used to assess pay equity. Legislation in this area is changing rapidly
at the state and local level. For example, if laws are passed prohibiting employers from asking
job applicants about their prior compensation. Technology can be particularly helpful to monitor
employee compensation for discrepancies based on categories (gender, race etc).

c. Chatbots

Certain technology, such as chatbots, can help employees’ access important information about
policies and procedures from anywhere and at any time. Chatbots communicate by text and can
be useful for answering common employee questions, Parker said.
Two-thirds of respondents said that they believe employees are more comfortable using chatbots
than other forms of contact for transactional inquiries about paid-time-off policies, open
enrollment and leaves of absence, according to a 2017 ServiceNow survey of 350 HR leaders.
ServiceNow is a cloud computing company based in Santa Clara, Calif.
Employers that use chatbots need to ensure that they are complying with data security, disability
and other federal and state employment laws.
Source: https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-
law/pages/how-can-artificial-intelligence-work-for-hr.aspx

d. Other Uses

IBM officials, who naturally are promoting their own AI capabilities through IBM Watson, also
demonstrated ways cognitive engines could help employees arrive at key day-to-day decisions in
the workplace. Usually, HR team members would have to handle these tasks.
 Vacation requests - Employees that want to put in for vacation days are informed that it
is unlikely to be approved as many others have already booked vacation in that time frame.
 Determining your mood - An employee takes a client call. After the call, the employee
receives feedback that he seems anxious and should take a break before his meeting.
 Team training - When an organization wants to take a more systematic approach to
employee training, team managers are provided a list of training opportunities for team members.
 Hiring processes - A hiring manager is presented with information that the company’s
recruitment approach falls short because it interviews too few candidates. Cognitive solutions
can help organizations tap into multiple data sources and reveal new insights to help companies
develop candidate profiles, among other things.
 Blockchain

WHY USE BLOCKCHAIN FOR PAYROLL?

HOW WILL BLOCKCHAIN CHANGE PAYROLL?

a. Cross-border payments

When your employees live in the same country, the process is straightforward, and you need the
bank to issue payments. It gets more complex when you need to make cross-border payments
because you employ expats.

There is additional wait time when money travels via the banking system from one country to the
next. When you send a check, the employee pays a fee to the bank to cash it. And when currency
exchanges are involved, the bank charges additional fees as exchange rates. Because of these
complexity, companies typically engage 3rd parties to handle international payments.

According to Andy Spence, who recently published his research report “Blockchain and the
CHRO”, the main areas where this new technology is being applied in people management and
HR will be in :-

- Identity verification mechanisms, also including qualifications, work history and references

- Decentralised career networks so people can monitise their own data rather than give it away
for free and reduce the need for intermediaries and associated fees

- Paying a variety of workers using digital smart contracts, making payment speedier and with
less remittance fees.

When using blockchain, you can achieve the following benefits:

1. Money moves faster – when the employer initiates the payment there is a direct
connection via DLT to the account balance of the employee, so employees receive their
payments quicker

2. Eliminate the middle man – you don’t need a trusted 3rd party in the middle, because the
DLT guarantees the security and validity of each transaction thus enabling peer-to-peer
payments. When making cross-border payments, it also reduces currency volatility, where
(hourly) changes in exchange rates can be taken advantage of by intermediaries.

3. Lower transaction costs – Using DLT there are fewer parties involved and when you
move money the transaction fee is a fraction of banking fees

4. Payment flexibility – employees can redirect payments and share wages earned with
(overseas) family, with no or low remittance fees
5. Transparency – with DLT you know the exact status of the payment at all times.

6. Better security – because DLT is encrypted and distributed, it is virtually impossible to

falsify content.

b. Blockchain payments also enable the contingent and gig economy workforce

An employer can enter into a smart contract stored on DLT, and when the work is delivered, the
payment happens immediately. Same day payments are important for these workers, as they want
to be paid in real time to eliminate dependency on payday lenders.

And it’s not limited to these workers: permanent employees welcome the flexibility to receive
instantaneous payments too.

A further benefit is that blockchain allows payment to people who don’t have a bank account.
These individuals (estimated at 2B people globally) would have an opportunity to create a digital
bio-identification straight from their smartphones and use that to access a digital wallet platform
and accept payments.

Also read: https://www.pwc.co.uk/issues/futuretax/how-blockchain-can-impact-hr-and-

the-world-of-work.html

Possible spillover opportunity

EXAMPLE #4: HR BLOCKCHAIN IN DIGITAL PROCESS MANAGEMENT